Proceedings of IOE Graduate Conference, 2016 pp. 233–238

Home Based Enterprises in Traditional Settlements of Kathmandu Valley (Study of Textile Enterprises in Thaiba) Nisha Shrestha

Department of Architecture and Urban Planning, Pulchowk Campus, Institute of Engineering, Tribhuvan University Corresponding Email: [email protected]

Abstract Kathmandu Valley comprises of not only larger cities like Kathmandu, Patan and Bhaktapur but also consists of numerous small towns and villages which are scattered. Thaiba also reveals an excellent example of the unique clustered traditional Newari settlement of Malla period. Textile has always been an option for secondary occupation since Malla Period in Thaiba apart from agriculture. These Home Base enterprises have been major source of absorbing large numbers of workforce and for generating income. The purpose of this study was to find out the contribution of home based enterprises (HBEs) in house hold economy and its role in providing economic opportunities to poor migrants and identify the problems and issues related. Finally the growth potential of HBEs and their role in urban development was examined in the study. Both qualitative (in-depth interviews) and quantitative (with the aid of questionnaire) research methodology was utilized in this study. The results and findings indicate that all big enterprises have developed from small family businesses and are inherited. The enterprises are labor intensive. Employment size is a major criterion to define these enterprises. Most of the lower income groups of people are engaged in these types of enterprises and hence are benefited through employment and income generation.And these are providing direct and indirect contribution to national economy. In spite of its crucial role for providing employment and livelihoods to both urban and rural poor, its economic importance is rarely recognized either in national poverty reduction strategies or in city governance initiatives. Most of the problems lie with marketing management, loans, credit, corruption, large scale rampant smuggling of Indian and Chinese textiles, insufficient trained manpower. With the proper management strategies and policies, rules and regulations, co-ordination between different line agencies, these enterprises can be developed and encouraged, which further helps in urban development. Keywords Home Based Enterprises (HBEs), inherited, economic opportunities, labor intensive, urban development

1. Introduction Rapid urbanization is dominant phenomenon in developing countries around the world which has been Kathmandu Valley comprises of not only larger cities observed in from 1970s onward. Migration is one like Kathmandu, Patan and Bhaktapur but also consists of the key forces behind urbanization. Opportunities of numerous small towns and villages which are seem to be concentrated at few particular locations scattered. The valley’s radius of roughly 15 kilometers including Kathmandu Valley. Various push and pull is dotted with numerous small towns and village factors in social, political, economic and other grounds settlements. Sankhu, Thimi and Kirtipur were exert pressure for the migration from rural to urban developed as larger settlements with population of more areas [7]. People prefer to migrate to the city center to than 5,000 each, whereas the settlements in , grasp better opportunities which has also resulted Pharping, , Thaiba, Lubhoo, Shanagaun, chaotic urban environment exhibiting by so many , and Satungal were developed as undesirable urban elements like squatter settlements, smaller villages. These settlements were prominent slums, traffic congestion, environmental problems etc. traditional settlements and were popular for specific Since the living cost is very high in the city core and the non-farm roles (Home Based) apart from agriculture. people who are not willing to squat prefer off-farm job Home Based Enterprises in Traditional Settlements of Kathmandu Valley (Study of Textile Enterprises in Thaiba)

opportunities like Home Based enterprises (HBEs) the Thaiba VDC which includes Thaiba and Badegaun. available in the traditional settlements of the valley. Thaiba consists of 5, 6, 7, 8, 9 wards of the VDC. These settlements are capable of providing job opportunities to the rural poor migrants at suitable locations minimizing the travel cost. Therefore, Home Based Enterprises continues to make an important contribution to production and employment in the city. Home based enterprises are either service oriented or product oriented.

2. Home-based Enterprises - Theoretical Discussion

A home-based enterprise (HBE) is not just – a small business in a small structure, but a family operation in a dwelling, a “functional and organizational unit of production, generative reproduction, and consumption Figure 3.1: Location of Thaiba within the social formation of the ganze Haus,” as an economic historian has put it (Brunner, 1968, pages 103- 3.1 Textile Home Based Enterprises in Thaiba 127, cited in Medick, 1976, page 297; see also Chayanov, 925/1966) [13]. Thaiba is also an agrarian society like most of the traditional settlements. But the agriculture works is only From the literatures, it is clear that Rapid and seasonal so, the people have acquired secondary uncontrolled migration from rural to urban areas results occupation i.e. textile. Handlooms were used for informal labour market. Home based enterprises as a weaving the clothes (Khadi, Patashi, Dhaka etc.) by part of informal sector vary widely in size, location, using cotton thread (Charkha were used to make thread gender participation and sector of activity, but most are out of cotton) since the Malla period. Most of the single person, owning- operating unit, or small units people started to involve in textile business during the engaging family members. They may also be called as time when there was a boom of textile industries in livelihood enterprises as they provide employment Lubhoo. Most of the people in the beginning use to opportunities in the absence of more profitable bring raw materials from Lubhoo and sell the final alternatives. The skills are generally transferred from products to Lubhoo itself. Therefore, we can say that generation to generation and so mostly they are home with the development of textile in Lubhoo, Thaiba also based than organization-based. These enterprises have started to involve in this business economically as the been a driving force for economic growth, job creation secondary and primary profession apart from and poverty reduction in different developing countries. agriculture. With the passage of time and development, Some literature term this aspect as ’work-life balance’ ( handlooms were replaced by semi-automatic looms in simple term balance between the work and (family) which were capable of producing the cotton textile life; in case of women along with work, they can clothes which were used to make bed sheets, curtains, provide more time to look after family/household shirt, pants etc. affairs). Table 1: Textile Industry in the Year 2059 to 2069 BS 3. Introduction to Study Area: Thaiba Year No. of textile industry No. of looms 2059 91 1414 Thaiba is a village development committee in Lalitpur 2069 41 1102 District in the Bagmati Zone of central Nepal. Thaiba Source: Nepal Kapada Udhyog Sangha - Edited by Author, Field Survey lies in the east of Lalitpur district and is about 7 km (2012) from Lagankhel. There are altogether 9 wards within

234 Proceedings of IOE Graduate Conference, 2016

3.2 Socio-Economic Role of Textile which now are mostly formalized or in the verge of Enterprises in Thaiba formalization. Since, the enterprises have expanded their scale; the occupation is mostly done in mass form These enterprises account the large proportion of and has impacts on whole community as well as in the employment in Thaiba. According to the survey, there nation. One of the objectives is to know what kind of are 41 textile weaving enterprises, which have been contribution these enterprises are making in the whole giving employment opportunities to the 460 no. of community of the area and what can be the expectation workers which includes both local and migrant (male from them in future. and female). The enterprises have potential means of improving backward and forward linkages. Generally, By the analysis of the available information, the the sector is playing important socioeconomic roles and multiplier effect of these enterprises in the community showing positive performance changes. Employment and country as whole has been shown in table2. opportunities are given to the people who would As from Table2, it is clear that these types of otherwise have been unemployed because of lack of enterprises have significant contributions in urban skills and education. Main roles of the sector include: economy therefore, it highlights the need of planning source of employment and income for large number of interventions for improving their current situation. people; capacity to change local resources in to output and expanding local economic base, and facilitating sectors linkage. 4. Analysis and Findings

Home Based Enterprises in Thaiba can be defined as the 3.3 Potential Effect of the Enterprises enterprises that are age old household occupation apart Table 2: Potential of Enterprises from agriculture that includes: own account enterprises, labor intensive with informal employers and Enterprise in Description nonregistration of the enterprises or its employees. Thaiba HBEs operate at the nexus of housing and local Mean H.H Income/month (NRs.) 5,5485 economic development strategies. Whether as Mean H.H Income/year (NRs.) 66,5820 No. of H.H engaged in these incubators for growing enterprises or as survivalist 41 nos. enterprise at Study Area ventures for the unemployed, HBEs are making an Economic Benefit/Year (NRs.) 2,72,98,620 important contribution to our economy directly or No. of persons employed in H.H indirectly. HBE operators are clearly developing 91 nos. basis sustainable livelihoods by using their house as an Approx. 256 Total no. of population dependent on economically productive asset. (7.4% of Thaiba these enterprises Population) These textile HBEs play vital role in creation of Percentage of people involved in employment opportunities, poverty reduction and 45% H.H basis economic growth of the study area as well as country as No. of Workers employed 460 nos. whole. According to Field Survey there are altogether Mean workers income/month (NRs.) 10,383 41 establishments in operation and total number of Mean workers income/year (NRs.) 1,24,596 persons engaged is 551 including entrepreneurs and Economic Benefit/Year (NRs.) 5,73,14,160 workers. But the number of HBEs doing export-import Expected economic benefit / Year 8,46,12,780 business is not available; most of them are (NRs.) manufacturing enterprises. The results shows that most Source: Field Survey (2012) of the enterprise have been started informally and with the demand of time and expansion of the enterprise as well as the use of modern technology in the enterprise they have been formalized in a way. The analysis and discussion have shown that the textile enterprises are the old occupation in the society and have More of the migrant workers of low income groups are started their work from small and informal activities found to working in the enterprises than locals. Since,

235 Home Based Enterprises in Traditional Settlements of Kathmandu Valley (Study of Textile Enterprises in Thaiba)

Table 3: SWOT Analysis Strength Weakness Opportunities Threats Marketing problem; competition from other Employment generation High degree of illiteracy Household job countries, especially India and China Sustainable livelihoods Political instability and Lack of marketing and Near market center for low income and inconsistency in policy selling initiatives illiterate people framework Exploitation by Infrastructural Creation of new Continuity of inherited international materials bottlenecks and employment profession and change in taste of efficiency opportunities people Availability of low cost Lack of technological New generation people manpower provides development that affect Fulfill market demand reluctant to join the competitive advantage to the productivity occupation the enterprise Fragmented industry Increasing competitive Production of wide variety structure; most producers Women empowerment by pressures on product of products with limited economies involving them in Works prices of scale Lack of trained Less local employment Indirect contribution to manpower and financial Poverty Reduction due to migrant National economy constraints employment Higher indirect taxes, power and interest rates

Source: Field Survey (2012)

migrants are given more opportunities at work even they both local and migrants. Employment opportunities are are unskilled and uneducated, most of them are attracted given to the people who would otherwise have been towards the work and one worker tend to bring or invite unemployed because of lack of skills and education. their family and friends to the work. This have resulted the increase in migrant population within the settlement. 5. SWOT Analysis of the Enterprise Forward and backward linkages also exist within the enterprises on the basis of its outputs and inputs. One Based on the findings of the study, SWOT analysis has home based enterprise is found to be assisting the other been done to formulate the policy frame work and action home based enterprise; therefore, establishing the plans for the improvement of the present conditions of relation between the enterprises with the supply of raw this type of Home based enterprises in the study area. materials. The backward linkages are mainly set up Table3 represent the SWOT analysis. through the requirements of input, credit and partly through skill acquisition in terms of government linkages, financial linkages and technological linkages. 6. Importance of HBEs in urban development Thaiba’s textile enterprises have been in a period of transition in its function and spatial structure in response Urban development specifically refers to development to globalization and technological evolution. Textile being done in a urban setting which includes various sector serves as an important source of livelihoods and aspects like physical, social, economic, environmental income for large number of people in the settlements etc. From the field study and analysis done so far has

236 Proceedings of IOE Graduate Conference, 2016

proved these enterprises ( home based textile enterprises) 7. Conclusion and Recommendation as strong means of generating employment and income opportunities to the lower income groups (migrants as From the analysis and discussion it is found that the well as locals). textile enterprise as home based enterprise has great contribution as major source of employment and Table 4: Policy Framework for the Local Development income generation in the process of development. It has through Strengthening of Enterprises very prominent role in development of local as well as Recommended urban economy. Thus, results have shown that these Dimension Responsibility Policies enterprises have been helping in improvement of • Curbing Smuggling economic status of the local as well as the poor migrant and Strengthening of workers. Despite of having potentials and many benefits Legal GON customs Valuation these enterprises are facing different types of constraints • Labor Rights in their development. In order to address these problems • Bank should design and issues; policies, regulations and institutional a special scheme by management is to be carried out in an integrated manner providing project to stream line these sector in the mainstream of financing and • GoN / Private working capital development. Depending upon their scope, capacity and • Entrepreneurs • Contribution for role; assistance, credits, loans and facilities should be • Entrepreneurs Socio- social development provided to suit the present needs and requirements • GoN/Private economic at local level needed for the future. Therefore, from every expect, the • NGOs/INGOs • Create employment • VDC, enterprises are important in economic and social terms, • Power/Tax Subsidies Entrepreneurs in the short-run by providing incomes, jobs, especially • Increase use of for locals and migrants and in the long run by providing Locally made textile countries the opportunity for sustained economic in garment products • Vocational Training development which can be further improved by • Market promotions appropriate policies and institutions. Therefore, there is and diversification a need of coordination between different line agencies, • Technological efforts of different individuals, organizations, VDC, upgrading agencies, local authorities as well as government as a • Ensuring safety • NGOs/ whole. factors for workers INGOs • Enhance the working • Enterpreneurs Physical environment of the Acknowledgement • VDC/GoN/ workers NGOs/INGOs • Provide necessary The author is grateful to Center of Applied Research • Enterpreneurs facilities to the and Development (CARD) for this wonderful enterprise opportunity. Author expresses utmost gratitude to Prof. • Maintenance of Dr. Sudha Shrestha for her continuous support as thesis available physical supervisor with valuable suggestion and encouragement. facilities The author would also like to express sincere gratitude to Prof. Dr. Sudarshan Raj Tiwari who has been an Since it is becoming increasingly difficult to find a inspiration for hurdling all the obstacles in the solution for urban unemployment, these types of completion of this research work. Author’s special enterprises plays a vital role in providing opportunities thanks go to all entrepreneurs who took part in the to the poor rural migrants. Hence, this has helped in questionnaire survey as well as the workers who showed reducing poverty to some extent. Table4 represents the interest to participate in the surveys and interviews. policy framework along with different actors and their Similarly, Author would also like to thank all the friends responsibility on the above regards: and family members for their meaningful time during field visit and data collection.

237 Home Based Enterprises in Traditional Settlements of Kathmandu Valley (Study of Textile Enterprises in Thaiba)

References [10] Pradhan Pushkar K (2003), Manual for Rural Urban Linkage And Rural Development Analysis, New Hira [1] Brown Alison, (2006), Contested Space, Street Trading, Books Enterprises: Kirtipur Public Space, and Livelihoods in Developing Cities. [11] Rimal B, Informal Sector and Labour Rights [2] Shrestha Sudha, Chapter 9: The new Urban economy: governance and stret livelihoods in the Kathmandu Valley, [12] Rudra Suwal, Central Bureau of Statistics, Nepal, Nepal Bishnu Pant, Asian Development Bank (2009), Paper [3] Chapagain, D. (2001). Role of Trade Unions In Micro Prepared for the Special IARIW-SAIM Conference on And Small Enterprises In Nepal. “Measuring the Informal Economy in Developing Countries”. Measuring Informal Sector Economic [4] Clancy (2006), Urban poor livelihoods: Understanding Activities in Nepal the role of energy services. [13] Shrestha Tulshi Ram, 2003, Role of Cottage and Small [5] Hoeven R, (2005), The effect of organization on the industries in Urban Dvelopement ( A case study of livelihoods of female home based workers in Nepal Bhaktapur) [6] Kellett and Tipple, Stockholm, (2003), Exploring Space: Researching the use of domestic space for income [14] Strassmann,Home-Based Enterprises In Cities Of generation in developing cities Methodologies in Developing Countries, http://pdf.usaid.gov/pdf docs/ Housing Research PNABC77 6.pdf

[7] Lowe, Schilderman, (2002) The impact of regulations on [15] Study On Urban Issues Of Home Based Workers In urban development and the livelihoods of the urban poor Selected Cities Of Nepal, Subedi C, 2001, Role of Small Towns in sustainable development of its Hinterland [8] Mishra Deepak , (2003) , Role of Small scale informal industrial enterprises in Urban Development [16] Upadhyaya Umesh., Home Based Workers in Nepal, [9] M. Sohail and S. Cavill (2003), DRAFT 1: Regulatory (Published in South Asia Homenet Bulletin, 2000 Guidelines for Urban Upgrading Project

238